The worker-misperception explanation of the SRAS curve is used to explain why
A) SRAS curves shift to the right
B) SRAS curves shift to the left
C) the AD curve cannot change the price level if the SRAS curve is operational.
D) the SRAS curve slopes downward.
E) none of the above
E
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Refer to the above figure. Suppose the U.S. economy is currently operating at point C. Which of the following actions would you recommend to the president of the United States?
A) Engage in contractionary fiscal policy by reducing government spending. B) Reduce taxes to stimulate investment, consumption and net exports. C) Increase government spending while holding taxes constant. D) Reduce the interest rate to stimulate investment minimizing the crowding out effect.
Of the types of business organizations in the United States, sole proprietorships account for the ________ percentage of firms and the ________ percentage of profits
A) smallest; smallest B) largest; largest C) smallest; largest D) largest; smallest
Which of the following best describes the simple spending multiplier? a. It shows the magnified change in planned aggregate spending that arises from a change in output
b. It shows the magnified change in equilibrium output demanded that arises from a change in income. c. It shows the magnified change in planned aggregate spending that arises from a change in equilibrium output. d. It shows the magnified change in equilibrium output demanded that arises from a given initial change in planned aggregate spending. e. It shows the change in planned aggregate spending that arises from a change in real output.
The single most important piece of information about a stock is its
a. term. b. dividend. c. daily volume. d. price.